SOURCE: GAWK, Inc.

GAWK, Inc.

April 07, 2015 09:00 ET

GAWK Signs Debt Purchase LOI With Southridge Advisors II

LOS ANGELES, CA--(Marketwired - Apr 7, 2015) - GAWK Inc. (OTC PINK: GAWK) announced today that it has signed a letter of intent (LOI) with Southridge Advisors II, LLC, an institutional investor, providing for debt purchase of up to $3 million, in addition to the $5,000,000 equity commitment announced on April 1.

This allows management to focus its efforts and allocate any available resources towards revenue generating activities while Southridge relieves the company of servicing its existing debt in favor of equity.

Scott Kettle, CEO of GAWK, Inc., said, "Southridge shares our enthusiasm for our plan to acquire data centers and other strategic businesses within the cloud computing and Voice over IP sector across the United States. We expect to be offering a la carte services to small to-medium businesses in the cities where we purchase data centers, hiring local employees and creating tax bases for those cities. This transaction will be another tool for Gawk to utilize when structuring those acquisitions. We anticipate announcing additional acquisitions after these financing instruments are in place."

About GAWK, Inc.
Gawk Incorporated is a world innovator of digital Internet-related technology designed to meet the needs of modern consumers, businesses and enterprises globally. www.gawkinc.com

About Southridge
Southridge is a diversified financial holdings company that specializes in funding and advising small cap and growth companies in the public markets. Since 1996, the structured finance team at Southridge has made direct investments of over $1.75 Billion in over 300 companies globally. Southridge advises small public companies on a wide variety of corporate issues from the process of becoming a public company, to individualized financing techniques, to optimized balance sheet management. For further information about Southridge, please visit www.southridge.com

Forward-Looking Statements
All statements in this release that are not strictly historical facts are "forward-looking statements." Such forward-looking statements are based on GAWK's current assumptions, beliefs and expectations, and involve risks, uncertainties and other factors that may cause GAWK's actual results to be materially different from any results expressed or implied by such forward-looking statements. Some can be identified by the use of words such as "expect," "plan," "possibility," "offer," "if," "negotiate," "when," "believe," "will," "estimate," "continue," and similar expressions. Risks, uncertainties, and other factors that could cause or contribute to such differences include, but are not limited to: ongoing and future intellectual property enforcement actions; the ability to successfully litigate or settle claims of patent infringement; GAWK's ability to obtain necessary financing, generate sufficient cash flow, and maintain appropriate indebtedness; and the increasing development of market competition in the area of telecommunications. These factors and others are described in more detail in GAWK's public filings with the Securities and Exchange Commission, including the risks discussed in the "Risk Factors" section in GAWK's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of these reports can be found on GAWK's website (http://gawkinc.com) under the heading "Investor Relations." GAWK is providing this information as of the date of this release and, except as required by law, does not undertake any obligation to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

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